FTX Unstakes $23M Worth of SOL, Is a Potential Solana Dump Imminent?
A wallet associated with the defunct crypto exchange FTX and its sister company Alameda Research has redeemed 177,693 Solana (SOL) tokens, valued at approximately $23.75 million, from the Solana Proof-of-Stake (PoS) network.
The movement, highlighted by PeckShield in a September 12 post on X, has reignited speculation within the crypto community about a potential selloff of the tokens.
Speculation Rises After FTX/Alameda Wallet Movements
Additional data from Solscan shows that the wallet in question, H4y…gFZ, still holds 7.057 million SOL, valued at around $954 million, currently staked.
This recent activity echoes similar moves in November and December 2023 when the same address unstaked significant amounts of SOL and transferred them to Coinbase.
It has caused speculation within the crypto community about a potential selloff, as market participants typically move their tokens to centralized exchanges (CEXs) for liquidation after unstaking them.
However, some analysts believe it may not have a major impact on SOL’s price as the amount unstaked is relatively small compared to the total holdings of the wallet, which accounts for 1.5% of the asset’s circulating supply.
Furthermore, it is expected that any future sales by the FTX estate could be conducted through over-the-counter (OTC) deals, reducing the likelihood of a sharp market reaction.
Legal Troubles Continue for FTX Executives
The timing of the unstaking comes as FTX and its executives continue to face intense legal scrutiny. Former Alameda CEO Caroline Ellison is scheduled for sentencing on September 24 after pleading guilty to all charges related to the exchange’s collapse.
Despite the legal drama and concerns regarding the unlocking, the SOL price has largely remained stable, even seeing a 5% increase over the past 24 hours to $135. Additionally, the token’s price is up by more than 650% on the yearly chart.
Following a notable performance in 2023, the fifth-ranked cryptocurrency has delivered more modest gains in 2024. After peaking at $209 in March, coinciding with Bitcoin’s new all-time high, it has experienced a downward trend. The price is currently stabilizing around $130, potentially setting the stage for a future rebound.
For the token to see significant price increases, several factors will need to align, including advancements in network technology, a resurgence of meme coins, increased institutional investments, and possible ETF launches.
The surge in meme coin interest was a key driver of its rise to $200 in March. Should these catalysts materialize, market watchers believe there is potential for its price to reach $1,000 by 2025.
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